EVERY time I go on a trip outside Manila, I always sit myself by the window of the airport terminal to watch how each plane is prepared for flight. There are numerous people attending to airplanes. Ramp services make sure baggage is properly loaded. The fuel lineman loads up the plane with jet fuel. The flight crew boards ahead to do a final check of the cabin.
Before taking off, the captain and his first officer go through a checklist. Communication is established with the tower control. Finally when the plane is pulled and set on the runaway, the ground technician checks the plane again as the engine revs up. He then unplugs his headset and stands by to give a thumbs-up for takeoff, waving the captain to a safe flight.
Each time a plane flies, the same ritual is done again and again. It may look repetitious but the utmost concern is safety for all. The captain and first officer with all the flying hours may have memorized the steps. Yet they still go through each checklist every time.
A business in order to succeed must establish and always adhere to a systems check as well. There are various people in the organization who are given the Key Result Areas (KRA). If only one segment of the work force disregards its assigned duties it could result in disaster.
We hear reports of airplane crashes due to pilot error or a malfunction in the system. Taking something in business for granted, or settling for okay lang ’yan also spells danger. Mediocrity in the workplace is something that cannot be tolerated. In the world of business, competition never sleeps, especially in this age where the Internet has eliminated time barriers.
Businesses using franchising as a vehicle for expansion may be a better choice. Yet expanding without doing the systems check is dangerous, too. Attending to the minutest details separates the real franchise business from those pseudo or mediocre franchises. Getting a business geared up for franchising takes time. A thorough review of everything, from the business concept to the existing procedures, should be conducted. Oftentimes, there are questions that need to be answered even if they appear simplistic.
Some of the common pitfalls I see among entrepreneurs who are franchising are as follows:
Prematurely launching the franchise offering. I have seen many entrepreneurs who are gung-ho to launch their franchise. I can understand the excitement but do hold on to your horses. Some of the factors behind one’s over-eagerness may be the following:
- In need of money to pay off a loan or purchase some equipment.
- Wanting to expand fast to many places (the more the merrier, they say)
- There are constant pressures from those inquiring
- Catching up with the competition
- The “launch now, worry later” thinking
From my point of view, the only time an entrepreneur can launch his franchise offering is after establishing a strong foundation for the business. The big planes took years and years on the drawing board. There were costly replicas before anybody ever got to see the working model. So why do entrepreneurs hurry and create undoable blunders?
What I always recommend is to do a horizontal reintegration method. This is where every aspect of the present business is reviewed and carefully analyzed. Examples may be the applicability and adaptability of the concept in another location; logistics issue of supplying and maintaining strict quality control; profitability; organizational development with specified tasks.
Every step of the way must be tested and retested in the identified model or prototype store. If profitability is an issue for the business owner, then I do not see the logic of franchising it to other people. Responsibility is the keyword. Make sure to avoid spreading the virus by franchising a nonprofitable business.
There are instances where every procedure of the business is dependent on the various verbal instructions issued by management. Ever wonder what those flight bags pilots tug along? Those contain manuals of various kinds. In every business, there has to be a documented manual of operations, which should be clear and implementable.
In my book Is Franchising For You?, which is available in National Book Store, I wrote specific areas to focus on. This, too, is the guide many people have found beneficial before getting any franchise. Read the many testimonials of successful franchisors located at the back cover. They were never-heard brands before and yet today are brands everybody knows.
Non-improvement of the franchise: The entrepreneur may have successfully launched his business franchise offering. However he has failed to review and further improve. The franchise program needs to be reviewed. There is no perfect franchise to speak of. Even McDonald’s with 38,000 branches is always on its toes fine-tuning.
I remember seeing my colleagues train in Singapore, the Filipino team for the first Philippine McDonald’s branch. They stayed in an apartment and had to read many manuals. They had to review and absorb all of them before going to work.
Memorizing was not as important as learning what it takes to manage a McDonald’s. In my working years abroad, I, too, had to read and learn the value of maintaining an effective and efficient relationship with franchisees.
The Pilot cannot be reached, try your call later: Entrepreneurs are the pilots of their businesses. They must be on top of the situation. They must know their businesses like the back of their hands.
What I have often seen, though, is once the franchise business has been launched, the owners would only rely on data or summary reports submitted to them.
They would be present during the awarding and photo-op with the incoming franchisee. Thereafter, just like what a mobile-phone recording would say “the owner cannot be reached or may be outside the coverage area, please try your call later”.
This lack of communication can be disaster for the franchise business. The captain of the plane may have delegated his duties to his first officer upon reaching the right assigned altitude, but he is around and watches. Whenever there is foreseen air turbulence, the captain takes charge. I have seen dedicated entrepreneurs who never falter from day one, when they turned over the business to the franchisee. There’s always constant concern and they maintain an open-door policy. This is how it should be.
This 2012, it is never too late for those who are franchising their business to conduct a general systems check. Begin with an inventory of skills and efficiencies of the people in the organization. Be on the lookout for that okay na ’yan attitude and nip it in the bud immediately. Review the trending and growth of each franchisee starting from the time opened to the present. Are there any areas that may be waving some red flags? How about the competitive advantages the business offers vis-à-vis direct competitors?
Successful entrepreneurs are always vigilant concerning their businesses. There are no day-offs. They do not stop thinking of better, more effective and profitable ways to run their businesses. They always go through a systems check.
Good Luck and advance Kiong Hee Huat Tsai!


























